RBNZ raises rates by 25 bps to 2.5%, flags further tightening

Published Jul 8, 03:06 AM UTC

The Reserve Bank of New Zealand (RBNZ) raised its benchmark official cash rate by 25 basis points to 2.5% on Wednesday, July 8, 2026, signaling further tightening to combat inflation pressures. The move marks a reversal from the previous easing cycle, as the RBNZ had slashed rates by 325 basis points since August 2024 to support a struggling economy. The central bank's decision indicates growing concern over persistent inflation, with policymakers prepared to continue hiking rates as needed. The rate increase was widely anticipated by markets, and the RBNZ's forward guidance suggests additional tightening measures are likely in the coming months to ensure price stability.